U.S. Self-checkout Systems Market Size, Share & Trends Analysis Report By Component (Systems, Services), By Type (Cash-based, Cashless-based), By Application (Supermarkets & Hypermarkets), And Segment Forecasts, 2021 - 2028

Report Overview

The U.S. self-checkout systems market size was valued at USD 1.26 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.3% from 2021 to 2028. The changing consumer preferences to purchase products offline after experiencing and testing products personally are prompting retail store chains in the U.S. to install self-checkout systems to enhance the consumer experience, thereby driving the growth of the market over the forecast period. The strategies being pursued by the operators of retail outlets in the U.S. to roll out self-checkout systems as part of the efforts to serve a larger customer base and gain a competitive edge over their rivals are expected to contribute toward the growth of the market. The continued advances and automation in the U.S. retail industry also bode well for the growth of the market over the forecast period.

Rising employee costs and real estate costs coupled with the soaring competition from e-commerce channels are some of the major challenges the retail industry in the U.S. has been confronting. As a result, operators of the retail stores in the U.S. are putting a strong emphasis on improving productivity and reducing overhead costs. Retail stores in the U.S. are particularly looking forward to investing in self-service solutions to improve customer experience and stand out in the competition. Self-checkout systems are emerging as one of the promising self-service solutions, which can potentially help retail owners in freeing up their staff from the checkout counters and deploying them on other operations to improve overall productivity.

The changing consumer preference towards self-service solutions is also emerging as one of the decisive factors driving the growth of the market. Tech-savvy consumers are particularly demanding for convenient, secure, and self-assisted shopping experiences at retail stores. Advances in technology and the changing technological trends are prompting retailers to aggressively adopt cashless self-checkout systems, which can typically allow consumers to shop securely and checkout without any manual intervention. For instance, having realized the growing preference for self-service among millennial customers, Key Food Montague, a grocery store based in New York, U.S., implemented Toshiba Global Commerce Solutions cashless self-checkout systems in August 2017 as part of the efforts to gain a competitive edge.

Advances in self-checkout systems are equally contributing to the growth of the market. Manufacturers of self-checkout systems are increasingly adopting the latest technologies, including Artificial Intelligence (AI), machine vision systems, and ceiling-based cameras, to help retailers in curbing the instances of shoplifting. Modern self-checkout systems are also allowing vendors to promote brands and advertisements and helping retailers in improving their brand presence. The trend of installing self-checkout systems integrated with Radio Frequency Identification Device (RFID) and Near Field Communication (NFC) technologies and mobile capabilities has also been gaining traction as retailers are putting a strong emphasis on improving purchase efficiency.

The outbreak of the COVID-19 pandemic took a severe toll on the U.S. self-checkout systems market in 2020. Retail outlets were operating at limited capacity as part of the restrictions imposed on the movement of people to arrest the spread of coronavirus. At the same time, the demand for self-checkout systems plummeted as customers opted for contactless solutions in the wake of the outbreak of the pandemic. While retail transformation projects were suspended temporarily, a looming shortage of components due to supply chain disruptions also affected the manufacturing activities at the manufacturers of self-checkout systems.

Component Insights

The systems segment dominated the market in 2020 with a revenue share of more than 75% and is expected to continue dominating the market over the forecast period. The growing need to reduce customer waiting times across retail stores has been driving the demand for self-checkout systems over the past few years. The growing number of grocery stores and the aggressive investments in retail automation technologies to improve consumer experience has also been driving the adoption of self-checkout systems. Looking forward, the continued introduction of innovative self-checkout systems offering advanced features, such as customizable themes and charitable donation applications, is expected to drive the growth of the segment over the forecast period.

The services segment is expected to expand at the highest CAGR over the forecast period. The services segment primarily covers the consulting and training services offered by the self-checkout vendors to the retailers. The retail transformation strategies being pursued aggressively by the U.S. retail store chains are expected to play a vital role in driving the growth of the segment. Retail transformation strategies typically envisage approaching vendors of self-checkout systems to assess the retail in-store layout and seeking advice on the implementation of self-checkout systems accordingly.

Type Insights

The cash-based self-checkout systems segment accounted for the highest revenue share of more than 50% in 2020. Consumers in the U.S. still prefer cash or paper-based transactions at retail stores. Hence, several retail stores in the U.S. are aggressively adopting cash-based self-checkout systems to support cash-based transactions. The continued efforts by the government to promote cash-based transactions and ban cashless stores are also expected to drive the demand for cash-based systems over the forecast period. For instance, in January 2020, New York Council announced to pass a bill to ban cashless brick and mortar stores to reduce discrimination against members that do not have access to credit cards or are unbanked.

The cashless-based self-checkout systems segment is expected to expand at the highest CAGR over the forecast period. The growth of the segment can be attributed to the rapid growth in digital transactions and subsequently, the rapid rollout of digital payment platforms. The growing preference for mobile payment transactions and card-based payments among millennial customers is also expected to contribute to the growth of the segment over the forecast period.

Application Insights

The supermarkets and hypermarkets segment accounted for the largest market share of over 50% share in 2020. The demand for self-checkout systems has been higher among the supermarkets and hypermarkets in the U.S. and the trend is expected to continue over the forecast period. The growing footfall at the supermarkets and the subsequent need to improve operational efficiency while enhancing customer satisfaction are driving the adoption of self-checkout systems across the supermarkets and hypermarkets in the U.S. The increasing operational costs and the subsequent need to utilize the floor space efficiently are also driving the adoption of self-checkout systems across the retail industry in the U.S.

The convenience stores segment is expected to register a significant CAGR over the forecast period. Convenience stores are increasingly adopting self-service technologies to ensure frictionless customer service on a 24x7 basis. The growing consumer preference for cashless transactions is particularly driving the adoption of self-checkout systems at convenience stores. The growing number of convenience stores across the U.S. also bodes well for the growth of the segment over the forecast period.

Key Companies & Market Share Insights

The market can be described as a consolidated and competitive market owing to the presence of established global market players and local vendors. Key vendors operating in the market include Toshiba Global Commerce Solutions; NCR Corporation; Diebold Nixdorf, Incorporated; Fujitsu; and Gilbarco Inc. These vendors are serving as strategic partners of both large and small retailers to transform the retail frontends of the latter. The strong network of direct and indirect sales channels is helping these vendors maintain their presence in the market.

Pursuing strategic initiatives, such as striking long-term agreements with retail stores, mergers, and acquisitions, and new product development, are also helping the key market players in defending their market share. For instance, in November 2019, NCR Corporation acquired POS Solutions, a point-of-sale solution provider for the retail and hospitality industry based in the U.S. The company envisaged leveraging the acquisition to strengthen its network and provide innovative solutions to the customers. Some of the prominent players operating in the U.S. self-checkout systems market are:

• NCR Corporation

• Toshiba Global Commerce Solutions

• Fujitsu

• Diebold Nixdorf, Incorporated

• Gilbarco Inc.

• Posiflex Technology, Inc.

U.S. Self-checkout Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the U.S. self-checkout systems market report based on component, type, and application:

• Component Outlook (Revenue, USD Million, 2018 - 2028)

  • Systems

    • Hardware

    • Software

  • Services

• Type Outlook (Revenue, USD Million, 2018 - 2028)

  • Cash-based Self-Checkout System

  • Cashless-based Self-Checkout Systems

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • Supermarkets & Hypermarkets

  • Department Stores

  • Convenience Stores

  • Others